Wall Street's Best Unknown Stocks

When asked for the secret of his success, baseball player Wee Willie Keeler replied, "Hit 'em where they ain't." What worked for Willie at the plate applies equally well in investing. 

Seeking stocks that others ignore, shun, or simply forget gives individual investors like you an edge over the professionals. When Wall Street turns a blind eye, you have a chance to get in before these stocks are discovered -- or rediscovered -- and start taking off. 

Below, we'll check out companies with only a handful of analysts covering them, then pair our list with the opinions of the Motley Fool CAPS community. A stock that earns CAPS' top ratings, but hasn't yet caught analysts' attention, could be your next home run investment. 

Source: Yahoo! Finance; NA = not available.

Remember, without analyst support, you'll have to do your own scouting to see whether these stocks deserve a spot in your portfolio. Don't just buy or sell them based solely on their appearance here. 

A utility player
We hardly need to be reminded of the risks involved in coal mining following the explosion at one of Massey Energy's (NYSE: MEE) mines, yet just weeks after winning awards for safety at seven of its mines, Patriot Coal experienced a roof collapse at its Harris No. 1 mine. Fortunately, there were no injuries.

A plentiful resource, coal remains a key component of our manufacturing and industrial-base energy needs. When the Commerce Department released its latest report showing durable good orders rose for the fourth month out of the past five, the shares of Massey, Patriot Coal, and CONSOL Energy (NYSE: CNX) all jumped in response. Shares of Peabody Energy, the country's largest coal producer, also rose.

Despite it being an important part of the economy, the industry will be hampered by greater scrutiny of its practices. The Army Corps of Engineers just suspended a fast-track permitting program for mountaintop removal of the coal beneath, and the Environmental Protection Agency is deciding whether to allow Arch Coal (NYSE: ACI) to proceed with developing the biggest surface mine in West Virginia.

In looking at Patriot Coal, highly rated CAPS All-Star SultanOfSwing anticipates a rough patch.

Harris mine collapse on 6/12. "The lower production is expected to negatively impact second quarter 2010 earnings." It must be a big loss of revenue.

The big dig
Taseko Mines hasn't been in the spotlight because of any of the dangers inherent in copper and gold mining, but while copper prices fall on concerns about the U.S. recovery, gold continues its march higher. After selling a 22% stake in the gold from its British Columbia Prosperity mine, Taseko just signed a 25-year lease on it and expects to produce an estimated 250,000 ounces of gold and 115 million pounds of copper annually over 33 years.

All-Star DarthMaul09 is bullish on Taseko.

Over sold and making a comeback. All the recent news has been good for this company so its recent price fall was just collateral damage from the general market's sell off.

Kicking it higher
At less than $7 a share, Vanda Pharmaceutical trades for less than the cash it has on hand. With Fanapt, which treats schizophrenia in adults, getting FDA approval, Novartis (NYSE: NVS) launched the drug in the first quarter. It generated $21 million in revenue, for which Vanda was paid $2.1 million in royalties.

That's why CAPS member kampaakampaa says the tiny pharmaceutical is significantly undervalued.

Swing for the fences
If you're seeking investments where no one else is looking, Motley Fool CAPS is the best place to start your research. Read a company's financial reports, scrutinize key data and charts, and examine the comments your fellow investors have made, all from a stock's CAPS page. 

Sign up today for the completely free service and tell us whether these hidden stock opportunities will help us go one up on Wall Street.